A building violation can become an obstacle for a closing in several ways. Here are some possible scenarios:
1. Delay in obtaining a Certificate of Occupancy (CO): In many jurisdictions, a building must have a CO before it can be occupied or sold. If there are outstanding building violations, the issuance of a CO may be delayed until the violations are resolved. This delay can hold up the closing process.
2. Lender requirements: If the buyer is obtaining a mortgage to purchase the property, the lender may require that all building violations be resolved before approving the loan. If the violations are not resolved, the lender may refuse to fund the loan, which can prevent the closing from taking place.
3. Title issues: Building violations can create title issues that can prevent the sale of the property. For example, if the previous owner failed to resolve a violation and the city placed a lien on the property, the lien may need to be paid off before the sale can proceed.
4. Disclosure requirements: In some jurisdictions, sellers are required to disclose any building violations to potential buyers. If the seller failed to disclose the violations and they are discovered during the due diligence process, the buyer may be able to back out of the sale or negotiate a lower price.
In any of these scenarios, a building violation can create an obstacle to closing on a property. It’s important for buyers and sellers to be aware of any outstanding violations and work to resolve them before the closing date.
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